KEY POINTS:
Major decisions by at least two telecommunications companies are on hold as the industry waits for the Government to announce details of its auction of spectrum in the 2.3 GHz range.
In November the Government announced the auction would be held early this year.
Communications Minister David Cunliffe noted at the time that current right-holders did not have to give up their rights before they expired in 2010, but some may choose to do so.
Further details are yet to be released.
CallPlus chief executive Martin Wylie said today the company needed to know the outcome of the auction before making decisions on a nationwide wireless broadband network using WiMax technology.
CallPlus had secured US$450 million ($657 million) from a major Japanese trading house to fund the roll-out of a national WiMax network, he said, but would give no further details of the backer or the deal.
In September CallPlus announced it had formed a separate company, Blue Reach, to build a wireless network, and that it was spending $3 million on a trial in Whangarei.
Today Mr Wylie said the trial in Whangarei, and another in Whangaparaoa, were running, but the 2.3 GHz spectrum the Government was to auction was potentially better for WiMax than the spectrum being used in the trials.
"We need to find out whether we're successful and have national spectrum in 2.3. If we do get spectrum in 2.3 we need to run trials in 2.3," Mr Wylie said.
It would probably be the second half of the year before that was completed.
It was difficult to say how long it would take to set up a national network, but it would probably be a two to three year project, he said.
If everything went well it might be possible for a start to be made to the project towards the end of this year.
Woosh Wireless, which is planning a WiMax service, is also waiting for the outcome of the 2.3 GHz auction.
Woosh has spent several million dollars acquiring management and usage rights to 2.3GHz spectrum but could lose it as a result of the auction.
In The New Zealand Herald today Woosh chief financial officer Gary Neil said the company had decided to wait for events to unfold with the spectrum before making any decisions about large amounts of investment.
- NZPA
